Every transaction asks thousands of computers to do a little work: check it, share it, and store it. A fee puts a small price on that request, so sending one transaction is cheap but sending millions of junk ones is expensive. That price is what keeps spam from clogging the network.
Each chain sets its own fee rules. On many chains, the fee is a reward collected by whoever builds the next block. When the network is busy, people offer higher fees to get in sooner.
Real example: on the XRP Ledger, a normal transaction needs a tiny minimum cost in XRP. When you send, that amount is destroyed. It is not paid to validators or anyone else. When the network is under heavy load, the required cost rises for a while, then drops back once things calm down. Because the fee is destroyed, overpaying does not reward anyone. It only costs you more. Source: Transaction Cost.
A fee is attached so the network processes the transaction; on XRPL the fee is burned.
Step 1A fee puts a small price on that request, so sending one transaction is cheap but sending millions of junk ones is expensive.
Read all steps
- Attach fee: A fee puts a small price on that request, so sending one transaction is cheap but sending millions of junk ones is expensive.
- Processed: Every transaction asks thousands of computers to do a little work: check it, share it, and store it.
- Burned (XRPL): When you send, that amount is destroyed. It is not paid to validators or anyone else.